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|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED
NOVEMBER 2, 2013
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
D
ELAWARE
|
20-1920798
|
(State of Incorporation)
|
(I.R.S. Employer Identification No.)
|
|
|
3333 B
EVERLY
R
OAD
, H
OFFMAN
E
STATES
, I
LLINOIS
|
60179
|
(Address of principal executive offices)
|
(Zip Code)
|
|
|
|
|
|
Page
|
|
PART I – FINANCIAL INFORMATION
|
|
|
|
|
|
Item 1.
|
Financial Statements
|
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
PART II – OTHER INFORMATION
|
|
|
|
|
|
Item 1.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 4.
|
||
|
|
|
Item 6.
|
|
13 Weeks Ended
|
|
39 Weeks Ended
|
||||||||||||
millions, except per share data
|
November 2,
2013 |
|
October 27,
2012 |
|
November 2,
2013 |
|
October 27,
2012 |
||||||||
REVENUES
|
|
|
|
|
|
|
|
||||||||
Merchandise sales and services
|
$
|
8,272
|
|
|
$
|
8,857
|
|
|
$
|
25,595
|
|
|
$
|
27,594
|
|
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
||||||||
Cost of sales, buying and occupancy
|
6,341
|
|
|
6,604
|
|
|
19,322
|
|
|
20,243
|
|
||||
Selling and administrative
|
2,262
|
|
|
2,496
|
|
|
6,771
|
|
|
7,378
|
|
||||
Depreciation and amortization
|
181
|
|
|
211
|
|
|
559
|
|
|
625
|
|
||||
Impairment charges
|
6
|
|
|
—
|
|
|
14
|
|
|
—
|
|
||||
Gain on sales of assets
|
(21
|
)
|
|
(26
|
)
|
|
(276
|
)
|
|
(436
|
)
|
||||
Total costs and expenses
|
8,769
|
|
|
9,285
|
|
|
26,390
|
|
|
27,810
|
|
||||
Operating loss
|
(497
|
)
|
|
(428
|
)
|
|
(795
|
)
|
|
(216
|
)
|
||||
Interest expense
|
(61
|
)
|
|
(68
|
)
|
|
(181
|
)
|
|
(199
|
)
|
||||
Interest and investment income
|
8
|
|
|
7
|
|
|
29
|
|
|
28
|
|
||||
Other income
|
1
|
|
|
2
|
|
|
—
|
|
|
3
|
|
||||
Loss before income taxes
|
(549
|
)
|
|
(487
|
)
|
|
(947
|
)
|
|
(384
|
)
|
||||
Income tax (expense) benefit
|
2
|
|
|
(11
|
)
|
|
(19
|
)
|
|
(53
|
)
|
||||
Net loss
|
(547
|
)
|
|
(498
|
)
|
|
(966
|
)
|
|
(437
|
)
|
||||
(Income) loss attributable to noncontrolling interests
|
13
|
|
|
—
|
|
|
(41
|
)
|
|
(4
|
)
|
||||
NET LOSS ATTRIBUTABLE TO HOLDINGS’ SHAREHOLDERS
|
$
|
(534
|
)
|
|
$
|
(498
|
)
|
|
$
|
(1,007
|
)
|
|
$
|
(441
|
)
|
NET LOSS PER COMMON SHARE ATTRIBUTABLE TO HOLDINGS’ SHAREHOLDERS
|
|
|
|
|
|
|
|
||||||||
Basic loss per share
|
$
|
(5.03
|
)
|
|
$
|
(4.70
|
)
|
|
$
|
(9.49
|
)
|
|
$
|
(4.16
|
)
|
Diluted loss per share
|
$
|
(5.03
|
)
|
|
$
|
(4.70
|
)
|
|
$
|
(9.49
|
)
|
|
$
|
(4.16
|
)
|
Basic weighted average common shares outstanding
|
106.1
|
|
|
105.9
|
|
|
106.1
|
|
|
105.9
|
|
||||
Diluted weighted average common shares outstanding
|
106.1
|
|
|
105.9
|
|
|
106.1
|
|
|
105.9
|
|
|
13 Weeks Ended
|
|
39 Weeks Ended
|
||||||||||||
millions
|
November 2,
2013 |
|
October 27,
2012 |
|
November 2,
2013 |
|
October 27,
2012 |
||||||||
Net loss
|
$
|
(547
|
)
|
|
$
|
(498
|
)
|
|
$
|
(966
|
)
|
|
$
|
(437
|
)
|
Other comprehensive income
|
|
|
|
|
|
|
|
||||||||
Pension and postretirement adjustments, net of tax
|
46
|
|
|
46
|
|
|
140
|
|
|
138
|
|
||||
Deferred gain on derivatives, net of tax
|
2
|
|
|
—
|
|
|
2
|
|
|
5
|
|
||||
Currency translation adjustments, net of tax
|
—
|
|
|
4
|
|
|
(27
|
)
|
|
4
|
|
||||
Total other comprehensive income
|
48
|
|
|
50
|
|
|
115
|
|
|
147
|
|
||||
Comprehensive loss
|
(499
|
)
|
|
(448
|
)
|
|
(851
|
)
|
|
(290
|
)
|
||||
Comprehensive (income) loss attributable to noncontrolling interests
|
11
|
|
|
—
|
|
|
(36
|
)
|
|
(5
|
)
|
||||
Comprehensive loss attributable to Holdings’ shareholders
|
$
|
(488
|
)
|
|
$
|
(448
|
)
|
|
$
|
(887
|
)
|
|
$
|
(295
|
)
|
|
(Unaudited)
|
|
|
||||||||
millions
|
November 2,
2013 |
|
October 27,
2012 |
|
February 2,
2013 |
||||||
ASSETS
|
|
|
|
|
|
||||||
Current assets
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
599
|
|
|
$
|
622
|
|
|
$
|
609
|
|
Restricted cash
|
8
|
|
|
11
|
|
|
9
|
|
|||
Accounts receivable
(1)
|
541
|
|
|
665
|
|
|
635
|
|
|||
Merchandise inventories
|
8,912
|
|
|
9,567
|
|
|
7,558
|
|
|||
Prepaid expenses and other current assets
|
468
|
|
|
413
|
|
|
454
|
|
|||
Total current assets
|
10,528
|
|
|
11,278
|
|
|
9,265
|
|
|||
Property and equipment, net
|
5,682
|
|
|
6,174
|
|
|
6,053
|
|
|||
Goodwill
|
379
|
|
|
674
|
|
|
379
|
|
|||
Trade names and other intangible assets
|
2,858
|
|
|
2,894
|
|
|
2,881
|
|
|||
Other assets
|
762
|
|
|
782
|
|
|
762
|
|
|||
TOTAL ASSETS
|
$
|
20,209
|
|
|
$
|
21,802
|
|
|
$
|
19,340
|
|
LIABILITIES
|
|
|
|
|
|
||||||
Current liabilities
|
|
|
|
|
|
||||||
Short-term borrowings
(2)
|
$
|
1,751
|
|
|
$
|
1,890
|
|
|
$
|
1,094
|
|
Current portion of long-term debt and capitalized lease obligations
|
82
|
|
|
154
|
|
|
83
|
|
|||
Merchandise payables
|
3,517
|
|
|
3,851
|
|
|
2,761
|
|
|||
Other current liabilities
|
2,510
|
|
|
2,818
|
|
|
2,683
|
|
|||
Unearned revenues
|
912
|
|
|
940
|
|
|
931
|
|
|||
Other taxes
|
473
|
|
|
516
|
|
|
480
|
|
|||
Short-term deferred tax liabilities
|
430
|
|
|
506
|
|
|
382
|
|
|||
Total current liabilities
|
9,675
|
|
|
10,675
|
|
|
8,414
|
|
|||
Long-term debt and capitalized lease obligations
(3)
|
2,862
|
|
|
1,960
|
|
|
1,943
|
|
|||
Pension and postretirement benefits
|
2,387
|
|
|
2,260
|
|
|
2,730
|
|
|||
Other long-term liabilities
|
2,039
|
|
|
2,137
|
|
|
2,126
|
|
|||
Long-term deferred tax liabilities
|
919
|
|
|
869
|
|
|
955
|
|
|||
Total Liabilities
|
17,882
|
|
|
17,901
|
|
|
16,168
|
|
|||
Commitments and contingencies
|
|
|
|
|
|
||||||
EQUITY
|
|
|
|
|
|
||||||
Total Equity
|
2,327
|
|
|
3,901
|
|
|
3,172
|
|
|||
TOTAL LIABILITIES AND EQUITY
|
$
|
20,209
|
|
|
$
|
21,802
|
|
|
$
|
19,340
|
|
|
39 Weeks Ended
|
||||||
millions
|
November 2,
2013 |
|
October 27,
2012 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net loss
|
$
|
(966
|
)
|
|
$
|
(437
|
)
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
|
||||
Depreciation and amortization
|
559
|
|
|
625
|
|
||
Impairment charges
|
14
|
|
|
—
|
|
||
Gain on sales of assets
|
(276
|
)
|
|
(436
|
)
|
||
Pension and postretirement plan contributions
|
(326
|
)
|
|
(493
|
)
|
||
Settlement of Canadian dollar hedges
|
—
|
|
|
6
|
|
||
Change in operating assets and liabilities (net of acquisitions and dispositions):
|
|
|
|
||||
Deferred income taxes
|
7
|
|
|
49
|
|
||
Merchandise inventories
|
(1,392
|
)
|
|
(1,583
|
)
|
||
Merchandise payables
|
774
|
|
|
974
|
|
||
Income and other taxes
|
22
|
|
|
(33
|
)
|
||
Mark-to-market adjustments on Sears Canada derivative instruments
|
(2
|
)
|
|
1
|
|
||
Other operating assets
|
30
|
|
|
(69
|
)
|
||
Other operating liabilities
|
(116
|
)
|
|
115
|
|
||
Net cash used in operating activities
|
(1,672
|
)
|
|
(1,281
|
)
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
||||
Proceeds from sales of property and investments
|
300
|
|
|
511
|
|
||
Net increase (decrease) in investments and restricted cash
|
1
|
|
|
(4
|
)
|
||
Purchases of property and equipment
|
(201
|
)
|
|
(257
|
)
|
||
Net cash provided by investing activities
|
100
|
|
|
250
|
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
||||
Proceeds from debt issuances
|
994
|
|
|
3
|
|
||
Repayments of long-term debt
|
(65
|
)
|
|
(247
|
)
|
||
Increase in short-term borrowings, primarily 90 days or less
|
657
|
|
|
715
|
|
||
Sears Hometown and Outlet Stores, Inc. pre-separation funding
|
—
|
|
|
100
|
|
||
Proceeds from the sale of Sears Hometown and Outlet Stores, Inc.
|
—
|
|
|
347
|
|
||
Debt issuance costs
|
(14
|
)
|
|
(3
|
)
|
||
Purchase of Sears Canada shares
|
—
|
|
|
(10
|
)
|
||
Net cash provided by financing activities
|
1,572
|
|
|
905
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(10
|
)
|
|
1
|
|
||
NET DECREASE IN CASH AND CASH EQUIVALENTS
|
(10
|
)
|
|
(125
|
)
|
||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
|
609
|
|
|
747
|
|
||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$
|
599
|
|
|
$
|
622
|
|
Supplemental Cash Flow Data:
|
|
|
|
||||
Income taxes paid, net of refunds
|
$
|
(4
|
)
|
|
$
|
48
|
|
Cash interest paid
|
173
|
|
|
168
|
|
||
Unpaid liability to acquire equipment and software
|
44
|
|
|
65
|
|
|
Equity Attributable to Holdings’ Shareholders
|
|
|
||||||||||||||||||||
millions
|
Number
of Shares |
Common
Stock |
Treasury
Stock |
Capital in
Excess of Par Value |
Retained
Earnings (Deficit) |
Accumulated
Other Comprehensive Income (Loss) |
Noncontrolling
Interests |
Total
|
|||||||||||||||
Balance at January 28, 2012
|
106
|
|
$
|
1
|
|
$
|
(5,981
|
)
|
$
|
10,005
|
|
$
|
1,865
|
|
$
|
(1,609
|
)
|
$
|
60
|
|
$
|
4,341
|
|
Comprehensive loss
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income (loss)
|
—
|
|
—
|
|
—
|
|
—
|
|
(441
|
)
|
—
|
|
4
|
|
(437
|
)
|
|||||||
Pension and postretirement adjustments, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
137
|
|
1
|
|
138
|
|
|||||||
Deferred gain on derivatives, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
5
|
|
—
|
|
5
|
|
|||||||
Currency translation adjustments, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4
|
|
—
|
|
4
|
|
|||||||
Total Comprehensive Loss
|
|
|
|
|
|
|
|
(290
|
)
|
||||||||||||||
Stock awards
|
—
|
|
—
|
|
7
|
|
(1
|
)
|
—
|
|
—
|
|
—
|
|
6
|
|
|||||||
Purchase of Sears Canada shares
|
—
|
|
—
|
|
—
|
|
(3
|
)
|
—
|
|
(1
|
)
|
(6
|
)
|
(10
|
)
|
|||||||
Associate stock purchase
|
—
|
|
—
|
|
3
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3
|
|
|||||||
Separation of Sears Hometown and Outlet Stores, Inc.
|
—
|
|
—
|
|
—
|
|
(149
|
)
|
—
|
|
—
|
|
—
|
|
(149
|
)
|
|||||||
Balance at October 27, 2012
|
106
|
|
$
|
1
|
|
$
|
(5,971
|
)
|
$
|
9,852
|
|
$
|
1,424
|
|
$
|
(1,464
|
)
|
$
|
59
|
|
$
|
3,901
|
|
Balance at February 2, 2013
|
106
|
|
$
|
1
|
|
$
|
(5,970
|
)
|
$
|
9,298
|
|
$
|
885
|
|
$
|
(1,459
|
)
|
$
|
417
|
|
$
|
3,172
|
|
Comprehensive loss
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income (loss)
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,007
|
)
|
—
|
|
41
|
|
(966
|
)
|
|||||||
Pension and postretirement adjustments, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
132
|
|
8
|
|
140
|
|
|||||||
Deferred gain on derivatives, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2
|
|
—
|
|
2
|
|
|||||||
Currency translation adjustments, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(14
|
)
|
(13
|
)
|
(27
|
)
|
|||||||
Total Comprehensive Loss
|
|
|
|
|
|
|
|
(851
|
)
|
||||||||||||||
Stock awards
|
—
|
|
—
|
|
4
|
|
(1
|
)
|
—
|
|
—
|
|
—
|
|
3
|
|
|||||||
Associate stock purchase
|
—
|
|
—
|
|
3
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3
|
|
|||||||
Balance at November 2, 2013
|
106
|
|
$
|
1
|
|
$
|
(5,963
|
)
|
$
|
9,297
|
|
$
|
(122
|
)
|
$
|
(1,339
|
)
|
$
|
453
|
|
$
|
2,327
|
|
millions
|
November 2,
2013 |
|
October 27,
2012 |
|
February 2,
2013 |
||||||
Short-term borrowings:
|
|
|
|
|
|
||||||
Unsecured commercial paper
|
$
|
160
|
|
|
$
|
417
|
|
|
$
|
345
|
|
Secured borrowings
|
1,591
|
|
|
1,473
|
|
|
749
|
|
|||
Long-term debt, including current portion:
|
|
|
|
|
|
||||||
Notes and debentures outstanding
|
2,571
|
|
|
1,668
|
|
|
1,593
|
|
|||
Capitalized lease obligations
|
373
|
|
|
446
|
|
|
433
|
|
|||
Total borrowings
|
$
|
4,695
|
|
|
$
|
4,004
|
|
|
$
|
3,120
|
|
millions
|
Total Fair Value Amounts at
November 2, 2013 |
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Cash equivalents
(1)
|
$
|
154
|
|
|
$
|
154
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restricted cash
(2)
|
8
|
|
|
8
|
|
|
—
|
|
|
—
|
|
||||
Foreign currency derivative assets
(3)
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
||||
Total
|
$
|
166
|
|
|
$
|
162
|
|
|
$
|
4
|
|
|
$
|
—
|
|
millions
|
Total Fair Value Amounts at
October 27, 2012 |
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Cash equivalents
(1)
|
$
|
160
|
|
|
$
|
160
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restricted cash
(2)
|
11
|
|
|
11
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
171
|
|
|
$
|
171
|
|
|
$
|
—
|
|
|
$
|
—
|
|
millions
|
Total Fair Value Amounts at
February 2, 2013 |
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Cash equivalents
(1)
|
$
|
181
|
|
|
$
|
181
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restricted cash
(2)
|
9
|
|
|
9
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
190
|
|
|
$
|
190
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
Included within Cash and cash equivalents on the Condensed Consolidated Balance Sheets.
|
(2)
|
Included within Restricted cash on the Condensed Consolidated Balance Sheets.
|
(3)
|
Included within Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets.
|
millions
|
Markdowns
(1)
|
|
Severance
Costs
(2)
|
|
Lease
Termination
Costs
(2)
|
|
Other
Charges
(2)
|
|
Impairment
and
Accelerated
Depreciation
(3)
|
|
Total Store
Closing
Costs
|
||||||||||||
Kmart
|
$
|
12
|
|
|
$
|
3
|
|
|
$
|
(2
|
)
|
|
$
|
4
|
|
|
$
|
6
|
|
|
$
|
23
|
|
Sears Domestic
|
1
|
|
|
—
|
|
|
(34
|
)
|
|
1
|
|
|
2
|
|
|
(30
|
)
|
||||||
Sears Canada
|
—
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
||||||
Total for the 13-week period ended November 2, 2013
|
$
|
13
|
|
|
$
|
18
|
|
|
$
|
(36
|
)
|
|
$
|
5
|
|
|
$
|
8
|
|
|
$
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Kmart
|
$
|
18
|
|
|
$
|
7
|
|
|
$
|
(4
|
)
|
|
$
|
6
|
|
|
$
|
5
|
|
|
$
|
32
|
|
Sears Domestic
|
14
|
|
|
(1
|
)
|
|
1
|
|
|
(6
|
)
|
|
4
|
|
|
12
|
|
||||||
Sears Canada
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
3
|
|
|
—
|
|
|
3
|
|
||||||
Total for the 13-week period ended October 27, 2012
|
$
|
32
|
|
|
$
|
7
|
|
|
$
|
(4
|
)
|
|
$
|
3
|
|
|
$
|
9
|
|
|
$
|
47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Kmart
|
$
|
21
|
|
|
$
|
5
|
|
|
$
|
(3
|
)
|
|
$
|
10
|
|
|
$
|
7
|
|
|
$
|
40
|
|
Sears Domestic
|
7
|
|
|
2
|
|
|
(40
|
)
|
|
4
|
|
|
11
|
|
|
(16
|
)
|
||||||
Sears Canada
|
—
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
||||||
Total for the 39-week period ended November 2, 2013
|
$
|
28
|
|
|
$
|
24
|
|
|
$
|
(43
|
)
|
|
$
|
14
|
|
|
$
|
18
|
|
|
$
|
41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Kmart
|
$
|
18
|
|
|
$
|
7
|
|
|
$
|
7
|
|
|
$
|
6
|
|
|
$
|
6
|
|
|
$
|
44
|
|
Sears Domestic
|
14
|
|
|
(1
|
)
|
|
40
|
|
|
(6
|
)
|
|
10
|
|
|
57
|
|
||||||
Sears Canada
|
—
|
|
|
3
|
|
|
(1
|
)
|
|
3
|
|
|
—
|
|
|
5
|
|
||||||
Total for the 39-week period ended October 27, 2012
|
$
|
32
|
|
|
$
|
9
|
|
|
$
|
46
|
|
|
$
|
3
|
|
|
$
|
16
|
|
|
$
|
106
|
|
(1)
|
Recorded within Cost of sales, buying and occupancy on the Condensed Consolidated Statements of Operations.
|
(2)
|
Recorded within Selling and administrative on the Condensed Consolidated Statements of Operations. Lease termination costs are net of estimated sublease income, and include the reversal of closed store reserves for which the lease agreement has been terminated and the reversal of deferred rent balances related to closed stores.
|
(3)
|
Costs for the
13
- week period ended
November 2, 2013
include
$5 million
recorded within Impairment charges and
$3 million
recorded within Depreciation and amortization and costs for the
39
- week period ended
November 2, 2013
include
$13 million
recorded within Impairment charges and
$5 million
recorded within Depreciation and amortization on the Condensed Consolidated Statements of Operations. Costs for the
13
- week and
39
- week periods ended
October 27, 2012
are recorded within Depreciation and amortization on the Condensed Consolidated Statements of Operations.
|
millions
|
Severance
Costs
|
|
Lease
Termination
Costs
|
|
Other
Charges
|
|
Total
|
||||||||
Balance at October 27, 2012
|
$
|
22
|
|
|
$
|
120
|
|
|
$
|
17
|
|
|
$
|
159
|
|
Store closing costs
|
22
|
|
|
23
|
|
|
4
|
|
|
49
|
|
||||
Payments/utilizations
|
(3
|
)
|
|
(5
|
)
|
|
(7
|
)
|
|
(15
|
)
|
||||
Balance at February 2, 2013
|
41
|
|
|
138
|
|
|
14
|
|
|
193
|
|
||||
Store closing costs
|
24
|
|
|
(24
|
)
|
|
14
|
|
|
14
|
|
||||
Payments/utilizations
|
(28
|
)
|
|
(18
|
)
|
|
(12
|
)
|
|
(58
|
)
|
||||
Balance at November 2, 2013
|
$
|
37
|
|
|
$
|
96
|
|
|
$
|
16
|
|
|
$
|
149
|
|
millions
|
November 2,
2013 |
|
October 27,
2012 |
|
February 2,
2013 |
||||||
Pension and postretirement adjustments (net of tax of $(441), $(488) and $(443), respectively)
|
$
|
(1,276
|
)
|
|
$
|
(1,440
|
)
|
|
$
|
(1,408
|
)
|
Cumulative unrealized derivative gain (net of tax of $0, $0 and $0, respectively)
|
2
|
|
|
—
|
|
|
—
|
|
|||
Currency translation adjustments (net of tax of $(39), $(26) and $(39), respectively)
|
(65
|
)
|
|
(24
|
)
|
|
(51
|
)
|
|||
Accumulated other comprehensive loss
|
$
|
(1,339
|
)
|
|
$
|
(1,464
|
)
|
|
$
|
(1,459
|
)
|
|
13 Weeks Ended November 2, 2013
|
|
13 Weeks Ended October 27, 2012
|
||||||||||||||||||||
millions
|
Before
Tax
Amount
|
|
Tax
Expense
|
|
Net of
Tax
Amount
|
|
Before
Tax
Amount
|
|
Tax
Expense
|
|
Net of
Tax
Amount
|
||||||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pension and postretirement adjustments
(1)
|
$
|
48
|
|
|
$
|
(2
|
)
|
|
$
|
46
|
|
|
$
|
48
|
|
|
$
|
(2
|
)
|
|
$
|
46
|
|
Deferred gain on derivatives
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Currency translation adjustments
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
5
|
|
|
(1
|
)
|
|
4
|
|
||||||
Total other comprehensive income (loss)
|
$
|
51
|
|
|
$
|
(3
|
)
|
|
$
|
48
|
|
|
$
|
53
|
|
|
$
|
(3
|
)
|
|
$
|
50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
39 Weeks Ended November 2, 2013
|
|
39 Weeks Ended October 27, 2012
|
||||||||||||||||||||
millions
|
Before
Tax
Amount
|
|
Tax
Expense
|
|
Net of
Tax
Amount
|
|
Before
Tax
Amount
|
|
Tax
Expense
|
|
Net of
Tax
Amount
|
||||||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pension and postretirement adjustments
(1)
|
$
|
145
|
|
|
$
|
(5
|
)
|
|
$
|
140
|
|
|
$
|
143
|
|
|
$
|
(5
|
)
|
|
$
|
138
|
|
Deferred gain on derivatives
|
2
|
|
|
—
|
|
|
2
|
|
|
5
|
|
|
—
|
|
|
5
|
|
||||||
Currency translation adjustments
|
(27
|
)
|
|
—
|
|
|
(27
|
)
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||
Total other comprehensive income (loss)
|
$
|
120
|
|
|
$
|
(5
|
)
|
|
$
|
115
|
|
|
$
|
152
|
|
|
$
|
(5
|
)
|
|
$
|
147
|
|
(1)
|
Included in the computation of net periodic benefit expense. See Note 8 to the Condensed Consolidated Financial Statements.
|
|
13 Weeks Ended
|
|
39 Weeks Ended
|
||||||||||||
millions
|
November 2,
2013 |
|
October 27,
2012 |
|
November 2,
2013 |
|
October 27,
2012 |
||||||||
Components of net periodic expense:
|
|
|
|
|
|
|
|
||||||||
Interest cost
|
$
|
75
|
|
|
$
|
96
|
|
|
$
|
225
|
|
|
$
|
288
|
|
Expected return on plan assets
|
(75
|
)
|
|
(93
|
)
|
|
(229
|
)
|
|
(279
|
)
|
||||
Amortization of experience losses
|
48
|
|
|
48
|
|
|
145
|
|
|
143
|
|
||||
Net periodic expense
|
$
|
48
|
|
|
$
|
51
|
|
|
$
|
141
|
|
|
$
|
152
|
|
(i)
|
Hardlines—consists of appliances, consumer electronics, lawn & garden, tools & hardware, automotive parts, household goods, toys, housewares and sporting goods;
|
(ii)
|
Apparel and Soft Home—includes women’s, men’s, kids’, footwear, jewelry, accessories and soft home;
|
(iii)
|
Food and Drug—consists of grocery & household, pharmacy and drugstore; and
|
(iv)
|
Service and Other—includes repair, installation and automotive service and extended contract revenue as well as revenues earned in connection with our agreements with SHO.
|
|
13 Weeks Ended November 2, 2013
|
||||||||||||||
millions
|
Kmart
|
|
Sears
Domestic |
|
Sears
Canada |
|
Sears
Holdings |
||||||||
Merchandise sales and services
|
|
|
|
|
|
|
|
||||||||
Hardlines
|
$
|
822
|
|
|
$
|
2,084
|
|
|
$
|
472
|
|
|
$
|
3,378
|
|
Apparel and Soft Home
|
913
|
|
|
1,174
|
|
|
421
|
|
|
2,508
|
|
||||
Food and Drug
|
1,162
|
|
|
2
|
|
|
—
|
|
|
1,164
|
|
||||
Service and Other
|
19
|
|
|
1,159
|
|
|
44
|
|
|
1,222
|
|
||||
Total merchandise sales and services
|
2,916
|
|
|
4,419
|
|
|
937
|
|
|
8,272
|
|
||||
Costs and expenses
|
|
|
|
|
|
|
|
||||||||
Cost of sales, buying and occupancy
|
2,327
|
|
|
3,326
|
|
|
688
|
|
|
6,341
|
|
||||
Selling and administrative
|
745
|
|
|
1,244
|
|
|
273
|
|
|
2,262
|
|
||||
Depreciation and amortization
|
31
|
|
|
128
|
|
|
22
|
|
|
181
|
|
||||
Impairment charges
|
3
|
|
|
2
|
|
|
1
|
|
|
6
|
|
||||
Gain on sales of assets
|
(19
|
)
|
|
(2
|
)
|
|
—
|
|
|
(21
|
)
|
||||
Total costs and expenses
|
3,087
|
|
|
4,698
|
|
|
984
|
|
|
8,769
|
|
||||
Operating loss
|
$
|
(171
|
)
|
|
$
|
(279
|
)
|
|
$
|
(47
|
)
|
|
$
|
(497
|
)
|
Total assets
|
$
|
4,780
|
|
|
$
|
13,013
|
|
|
$
|
2,416
|
|
|
$
|
20,209
|
|
Capital expenditures
|
$
|
17
|
|
|
$
|
55
|
|
|
$
|
13
|
|
|
$
|
85
|
|
|
13 Weeks Ended October 27, 2012
|
||||||||||||||
millions
|
Kmart
|
|
Sears
Domestic |
|
Sears
Canada |
|
Sears
Holdings |
||||||||
Merchandise sales and services
|
|
|
|
|
|
|
|
||||||||
Hardlines
|
$
|
881
|
|
|
$
|
2,671
|
|
|
$
|
558
|
|
|
$
|
4,110
|
|
Apparel and Soft Home
|
917
|
|
|
1,263
|
|
|
443
|
|
|
2,623
|
|
||||
Food and Drug
|
1,263
|
|
|
9
|
|
|
—
|
|
|
1,272
|
|
||||
Service and Other
|
20
|
|
|
781
|
|
|
51
|
|
|
852
|
|
||||
Total merchandise sales and services
|
3,081
|
|
|
4,724
|
|
|
1,052
|
|
|
8,857
|
|
||||
Costs and expenses
|
|
|
|
|
|
|
|
||||||||
Cost of sales, buying and occupancy
|
2,409
|
|
|
3,448
|
|
|
747
|
|
|
6,604
|
|
||||
Selling and administrative
|
800
|
|
|
1,393
|
|
|
303
|
|
|
2,496
|
|
||||
Depreciation and amortization
|
39
|
|
|
145
|
|
|
27
|
|
|
211
|
|
||||
Gain on sales of assets
|
(3
|
)
|
|
(17
|
)
|
|
(6
|
)
|
|
(26
|
)
|
||||
Total costs and expenses
|
3,245
|
|
|
4,969
|
|
|
1,071
|
|
|
9,285
|
|
||||
Operating loss
|
$
|
(164
|
)
|
|
$
|
(245
|
)
|
|
$
|
(19
|
)
|
|
$
|
(428
|
)
|
Total assets
|
$
|
5,216
|
|
|
$
|
13,690
|
|
|
$
|
2,896
|
|
|
$
|
21,802
|
|
Capital expenditures
|
$
|
23
|
|
|
$
|
52
|
|
|
$
|
21
|
|
|
$
|
96
|
|
|
39 Weeks Ended November 2, 2013
|
||||||||||||||
millions
|
Kmart
|
|
Sears
Domestic
|
|
Sears
Canada
|
|
Sears
Holdings
|
||||||||
Merchandise sales and services
|
|
|
|
|
|
|
|
||||||||
Hardlines
|
$
|
2,697
|
|
|
$
|
6,725
|
|
|
$
|
1,397
|
|
|
$
|
10,819
|
|
Apparel and Soft Home
|
2,909
|
|
|
3,459
|
|
|
1,162
|
|
|
7,530
|
|
||||
Food and Drug
|
3,521
|
|
|
8
|
|
|
—
|
|
|
3,529
|
|
||||
Service and Other
|
60
|
|
|
3,517
|
|
|
140
|
|
|
3,717
|
|
||||
Total merchandise sales and services
|
9,187
|
|
|
13,709
|
|
|
2,699
|
|
|
25,595
|
|
||||
Costs and expenses
|
|
|
|
|
|
|
|
||||||||
Cost of sales, buying and occupancy
|
7,184
|
|
|
10,163
|
|
|
1,975
|
|
|
19,322
|
|
||||
Selling and administrative
|
2,205
|
|
|
3,800
|
|
|
766
|
|
|
6,771
|
|
||||
Depreciation and amortization
|
97
|
|
|
390
|
|
|
72
|
|
|
559
|
|
||||
Impairment charges
|
3
|
|
|
10
|
|
|
1
|
|
|
14
|
|
||||
Gain on sales of assets
|
(47
|
)
|
|
(48
|
)
|
|
(181
|
)
|
|
(276
|
)
|
||||
Total costs and expenses
|
9,442
|
|
|
14,315
|
|
|
2,633
|
|
|
26,390
|
|
||||
Operating income (loss)
|
$
|
(255
|
)
|
|
$
|
(606
|
)
|
|
$
|
66
|
|
|
$
|
(795
|
)
|
Total assets
|
$
|
4,780
|
|
|
$
|
13,013
|
|
|
$
|
2,416
|
|
|
$
|
20,209
|
|
Capital expenditures
|
$
|
42
|
|
|
$
|
131
|
|
|
$
|
28
|
|
|
$
|
201
|
|
|
39 Weeks Ended October 27, 2012
|
||||||||||||||
millions
|
Kmart
|
|
Sears
Domestic
|
|
Sears
Canada
|
|
Sears
Holdings
|
||||||||
Merchandise sales and services
|
|
|
|
|
|
|
|
||||||||
Hardlines
|
$
|
2,882
|
|
|
$
|
8,775
|
|
|
$
|
1,629
|
|
|
$
|
13,286
|
|
Apparel and Soft Home
|
3,003
|
|
|
3,715
|
|
|
1,215
|
|
|
7,933
|
|
||||
Food and Drug
|
3,922
|
|
|
32
|
|
|
—
|
|
|
3,954
|
|
||||
Service and Other
|
63
|
|
|
2,202
|
|
|
156
|
|
|
2,421
|
|
||||
Total merchandise sales and services
|
9,870
|
|
|
14,724
|
|
|
3,000
|
|
|
27,594
|
|
||||
Costs and expenses
|
|
|
|
|
|
|
|
||||||||
Cost of sales, buying and occupancy
|
7,560
|
|
|
10,546
|
|
|
2,137
|
|
|
20,243
|
|
||||
Selling and administrative
|
2,315
|
|
|
4,197
|
|
|
866
|
|
|
7,378
|
|
||||
Depreciation and amortization
|
110
|
|
|
437
|
|
|
78
|
|
|
625
|
|
||||
Gain on sales of assets
|
(17
|
)
|
|
(250
|
)
|
|
(169
|
)
|
|
(436
|
)
|
||||
Total costs and expenses
|
9,968
|
|
|
14,930
|
|
|
2,912
|
|
|
27,810
|
|
||||
Operating income (loss)
|
$
|
(98
|
)
|
|
$
|
(206
|
)
|
|
$
|
88
|
|
|
$
|
(216
|
)
|
Total assets
|
$
|
5,216
|
|
|
$
|
13,690
|
|
|
$
|
2,896
|
|
|
$
|
21,802
|
|
Capital expenditures
|
$
|
90
|
|
|
$
|
110
|
|
|
$
|
57
|
|
|
$
|
257
|
|
millions
|
November 2,
2013 |
|
October 27,
2012 |
|
February 2,
2013 |
||||||
Unearned revenues
|
$
|
849
|
|
|
$
|
796
|
|
|
$
|
843
|
|
Self-insurance reserves
|
697
|
|
|
724
|
|
|
714
|
|
|||
Other
|
493
|
|
|
617
|
|
|
569
|
|
|||
Total
|
$
|
2,039
|
|
|
$
|
2,137
|
|
|
$
|
2,126
|
|
•
|
SHO obtains a significant amount of its merchandise from the Company. We have also entered into certain agreements with SHO to provide logistics, handling, warehouse and transportation services. SHO also pays a royalty related to the sale of Kenmore, Craftsman and DieHard products and fees for participation in the Shop Your Way program.
|
•
|
SHO receives commissions from the Company for the sale of merchandise made through www.sears.com, extended service agreements, delivery and handling services and credit revenues.
|
•
|
The Company provides SHO with shared corporate services. These services include accounting and finance, human resources, information technology and real estate.
|
millions
|
Parent
|
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
354
|
|
|
$
|
245
|
|
|
$
|
—
|
|
|
$
|
599
|
|
Intercompany receivables
|
—
|
|
|
—
|
|
|
26,052
|
|
|
(26,052
|
)
|
|
—
|
|
|||||
Accounts receivable
|
—
|
|
|
412
|
|
|
129
|
|
|
—
|
|
|
541
|
|
|||||
Merchandise inventories
|
—
|
|
|
7,938
|
|
|
974
|
|
|
—
|
|
|
8,912
|
|
|||||
Prepaid expenses and other current assets
|
94
|
|
|
877
|
|
|
471
|
|
|
(966
|
)
|
|
476
|
|
|||||
Total current assets
|
94
|
|
|
9,581
|
|
|
27,871
|
|
|
(27,018
|
)
|
|
10,528
|
|
|||||
Total property and equipment, net
|
—
|
|
|
4,164
|
|
|
1,518
|
|
|
—
|
|
|
5,682
|
|
|||||
Goodwill and intangible assets
|
—
|
|
|
951
|
|
|
2,286
|
|
|
—
|
|
|
3,237
|
|
|||||
Other assets
|
15
|
|
|
278
|
|
|
2,840
|
|
|
(2,371
|
)
|
|
762
|
|
|||||
Investment in subsidiaries
|
15,257
|
|
|
25,443
|
|
|
—
|
|
|
(40,700
|
)
|
|
—
|
|
|||||
TOTAL ASSETS
|
$
|
15,366
|
|
|
$
|
40,417
|
|
|
$
|
34,515
|
|
|
$
|
(70,089
|
)
|
|
$
|
20,209
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings
|
$
|
—
|
|
|
$
|
1,751
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,751
|
|
Current portion of long-term debt and capitalized lease obligations
|
—
|
|
|
67
|
|
|
15
|
|
|
—
|
|
|
82
|
|
|||||
Merchandise payables
|
—
|
|
|
3,067
|
|
|
450
|
|
|
—
|
|
|
3,517
|
|
|||||
Intercompany payables
|
12,355
|
|
|
13,697
|
|
|
—
|
|
|
(26,052
|
)
|
|
—
|
|
|||||
Short-term deferred tax liabilities
|
3
|
|
|
460
|
|
|
—
|
|
|
(33
|
)
|
|
430
|
|
|||||
Other current liabilities
|
5
|
|
|
2,473
|
|
|
2,350
|
|
|
(933
|
)
|
|
3,895
|
|
|||||
Total current liabilities
|
12,363
|
|
|
21,515
|
|
|
2,815
|
|
|
(27,018
|
)
|
|
9,675
|
|
|||||
Long-term debt and capitalized lease obligations
|
1,238
|
|
|
3,785
|
|
|
85
|
|
|
(2,246
|
)
|
|
2,862
|
|
|||||
Pension and postretirement benefits
|
—
|
|
|
2,008
|
|
|
379
|
|
|
—
|
|
|
2,387
|
|
|||||
Long-term deferred tax liabilities
|
—
|
|
|
—
|
|
|
904
|
|
|
15
|
|
|
919
|
|
|||||
Other long-term liabilities
|
—
|
|
|
798
|
|
|
1,491
|
|
|
(250
|
)
|
|
2,039
|
|
|||||
Total Liabilities
|
13,601
|
|
|
28,106
|
|
|
5,674
|
|
|
(29,499
|
)
|
|
17,882
|
|
|||||
EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholder’s equity
|
1,765
|
|
|
12,311
|
|
|
28,841
|
|
|
(41,043
|
)
|
|
1,874
|
|
|||||
Noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
453
|
|
|
453
|
|
|||||
Total Equity
|
1,765
|
|
|
12,311
|
|
|
28,841
|
|
|
(40,590
|
)
|
|
2,327
|
|
|||||
TOTAL LIABILITIES AND EQUITY
|
$
|
15,366
|
|
|
$
|
40,417
|
|
|
$
|
34,515
|
|
|
$
|
(70,089
|
)
|
|
$
|
20,209
|
|
millions
|
Parent
|
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
382
|
|
|
$
|
240
|
|
|
$
|
—
|
|
|
$
|
622
|
|
Intercompany receivables
|
—
|
|
|
—
|
|
|
25,807
|
|
|
(25,807
|
)
|
|
—
|
|
|||||
Accounts receivable
|
—
|
|
|
511
|
|
|
154
|
|
|
—
|
|
|
665
|
|
|||||
Merchandise inventories
|
—
|
|
|
8,544
|
|
|
1,023
|
|
|
—
|
|
|
9,567
|
|
|||||
Prepaid expenses and other current assets
|
42
|
|
|
686
|
|
|
472
|
|
|
(776
|
)
|
|
424
|
|
|||||
Total current assets
|
42
|
|
|
10,123
|
|
|
27,696
|
|
|
(26,583
|
)
|
|
11,278
|
|
|||||
Total property and equipment, net
|
—
|
|
|
4,515
|
|
|
1,659
|
|
|
—
|
|
|
6,174
|
|
|||||
Goodwill and intangible assets
|
—
|
|
|
978
|
|
|
2,590
|
|
|
—
|
|
|
3,568
|
|
|||||
Other assets
|
20
|
|
|
267
|
|
|
2,471
|
|
|
(1,976
|
)
|
|
782
|
|
|||||
Investment in subsidiaries
|
16,728
|
|
|
26,130
|
|
|
—
|
|
|
(42,858
|
)
|
|
—
|
|
|||||
TOTAL ASSETS
|
$
|
16,790
|
|
|
$
|
42,013
|
|
|
$
|
34,416
|
|
|
$
|
(71,417
|
)
|
|
$
|
21,802
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings
|
$
|
—
|
|
|
$
|
1,890
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,890
|
|
Current portion of long-term debt and capitalized lease obligations
|
—
|
|
|
137
|
|
|
17
|
|
|
—
|
|
|
154
|
|
|||||
Merchandise payables
|
—
|
|
|
3,354
|
|
|
497
|
|
|
—
|
|
|
3,851
|
|
|||||
Intercompany payables
|
12,066
|
|
|
13,741
|
|
|
—
|
|
|
(25,807
|
)
|
|
—
|
|
|||||
Short-term deferred tax liabilities
|
5
|
|
|
531
|
|
|
—
|
|
|
(30
|
)
|
|
506
|
|
|||||
Other current liabilities
|
4
|
|
|
2,802
|
|
|
2,214
|
|
|
(746
|
)
|
|
4,274
|
|
|||||
Total current liabilities
|
12,075
|
|
|
22,455
|
|
|
2,728
|
|
|
(26,583
|
)
|
|
10,675
|
|
|||||
Long-term debt and capitalized lease obligations
|
1,237
|
|
|
2,823
|
|
|
101
|
|
|
(2,201
|
)
|
|
1,960
|
|
|||||
Pension and postretirement benefits
|
—
|
|
|
1,820
|
|
|
440
|
|
|
—
|
|
|
2,260
|
|
|||||
Long-term deferred tax liabilities
|
—
|
|
|
—
|
|
|
772
|
|
|
97
|
|
|
869
|
|
|||||
Other long-term liabilities
|
—
|
|
|
830
|
|
|
1,542
|
|
|
(235
|
)
|
|
2,137
|
|
|||||
Total Liabilities
|
13,312
|
|
|
27,928
|
|
|
5,583
|
|
|
(28,922
|
)
|
|
17,901
|
|
|||||
EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholder’s equity
|
3,478
|
|
|
14,085
|
|
|
28,833
|
|
|
(42,554
|
)
|
|
3,842
|
|
|||||
Noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
59
|
|
|
59
|
|
|||||
Total Equity
|
3,478
|
|
|
14,085
|
|
|
28,833
|
|
|
(42,495
|
)
|
|
3,901
|
|
|||||
TOTAL LIABILITIES AND EQUITY
|
$
|
16,790
|
|
|
$
|
42,013
|
|
|
$
|
34,416
|
|
|
$
|
(71,417
|
)
|
|
$
|
21,802
|
|
millions
|
Parent
|
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
320
|
|
|
$
|
289
|
|
|
$
|
—
|
|
|
$
|
609
|
|
Intercompany receivables
|
—
|
|
|
—
|
|
|
25,553
|
|
|
(25,553
|
)
|
|
—
|
|
|||||
Accounts receivable
|
—
|
|
|
506
|
|
|
129
|
|
|
—
|
|
|
635
|
|
|||||
Merchandise inventories
|
—
|
|
|
6,709
|
|
|
849
|
|
|
—
|
|
|
7,558
|
|
|||||
Prepaid expenses and other current assets
|
92
|
|
|
970
|
|
|
461
|
|
|
(1,060
|
)
|
|
463
|
|
|||||
Total current assets
|
92
|
|
|
8,505
|
|
|
27,281
|
|
|
(26,613
|
)
|
|
9,265
|
|
|||||
Total property and equipment, net
|
—
|
|
|
4,412
|
|
|
1,641
|
|
|
—
|
|
|
6,053
|
|
|||||
Goodwill and intangible assets
|
—
|
|
|
968
|
|
|
2,292
|
|
|
—
|
|
|
3,260
|
|
|||||
Other assets
|
17
|
|
|
223
|
|
|
3,147
|
|
|
(2,625
|
)
|
|
762
|
|
|||||
Investment in subsidiaries
|
16,413
|
|
|
24,988
|
|
|
—
|
|
|
(41,401
|
)
|
|
—
|
|
|||||
TOTAL ASSETS
|
$
|
16,522
|
|
|
$
|
39,096
|
|
|
$
|
34,361
|
|
|
$
|
(70,639
|
)
|
|
$
|
19,340
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings
|
$
|
—
|
|
|
$
|
1,094
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,094
|
|
Current portion of long-term debt and capitalized lease obligations
|
—
|
|
|
66
|
|
|
17
|
|
|
—
|
|
|
83
|
|
|||||
Merchandise payables
|
—
|
|
|
2,392
|
|
|
369
|
|
|
—
|
|
|
2,761
|
|
|||||
Intercompany payables
|
12,594
|
|
|
12,959
|
|
|
—
|
|
|
(25,553
|
)
|
|
—
|
|
|||||
Short-term deferred tax liabilities
|
3
|
|
|
412
|
|
|
—
|
|
|
(33
|
)
|
|
382
|
|
|||||
Other current liabilities
|
26
|
|
|
2,640
|
|
|
2,455
|
|
|
(1,027
|
)
|
|
4,094
|
|
|||||
Total current liabilities
|
12,623
|
|
|
19,563
|
|
|
2,841
|
|
|
(26,613
|
)
|
|
8,414
|
|
|||||
Long-term debt and capitalized lease obligations
|
1,237
|
|
|
3,081
|
|
|
135
|
|
|
(2,510
|
)
|
|
1,943
|
|
|||||
Pension and postretirement benefits
|
—
|
|
|
2,310
|
|
|
420
|
|
|
—
|
|
|
2,730
|
|
|||||
Long-term deferred tax liabilities
|
—
|
|
|
—
|
|
|
914
|
|
|
41
|
|
|
955
|
|
|||||
Other long-term liabilities
|
—
|
|
|
861
|
|
|
1,513
|
|
|
(248
|
)
|
|
2,126
|
|
|||||
Total Liabilities
|
13,860
|
|
|
25,815
|
|
|
5,823
|
|
|
(29,330
|
)
|
|
16,168
|
|
|||||
EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholder’s equity
|
2,662
|
|
|
13,281
|
|
|
28,538
|
|
|
(41,726
|
)
|
|
2,755
|
|
|||||
Noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
417
|
|
|
417
|
|
|||||
Total Equity
|
2,662
|
|
|
13,281
|
|
|
28,538
|
|
|
(41,309
|
)
|
|
3,172
|
|
|||||
TOTAL LIABILITIES AND EQUITY
|
$
|
16,522
|
|
|
$
|
39,096
|
|
|
$
|
34,361
|
|
|
$
|
(70,639
|
)
|
|
$
|
19,340
|
|
millions
|
|
Parent
|
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||
Merchandise sales and services
|
|
$
|
—
|
|
|
$
|
7,322
|
|
|
$
|
1,788
|
|
|
$
|
(838
|
)
|
|
$
|
8,272
|
|
Cost of sales, buying and occupancy
|
|
—
|
|
|
5,758
|
|
|
1,024
|
|
|
(441
|
)
|
|
6,341
|
|
|||||
Selling and administrative
|
|
—
|
|
|
2,087
|
|
|
572
|
|
|
(397
|
)
|
|
2,262
|
|
|||||
Depreciation and amortization
|
|
—
|
|
|
138
|
|
|
43
|
|
|
—
|
|
|
181
|
|
|||||
Impairment charges
|
|
—
|
|
|
5
|
|
|
1
|
|
|
—
|
|
|
6
|
|
|||||
Gain on sales of assets
|
|
—
|
|
|
(21
|
)
|
|
—
|
|
|
—
|
|
|
(21
|
)
|
|||||
Total costs and expenses
|
|
—
|
|
|
7,967
|
|
|
1,640
|
|
|
(838
|
)
|
|
8,769
|
|
|||||
Operating income (loss)
|
|
—
|
|
|
(645
|
)
|
|
148
|
|
|
—
|
|
|
(497
|
)
|
|||||
Interest expense
|
|
(54
|
)
|
|
(101
|
)
|
|
(17
|
)
|
|
111
|
|
|
(61
|
)
|
|||||
Interest and investment income
|
|
—
|
|
|
9
|
|
|
110
|
|
|
(111
|
)
|
|
8
|
|
|||||
Other income
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
Income (loss) before income taxes
|
|
(54
|
)
|
|
(737
|
)
|
|
242
|
|
|
—
|
|
|
(549
|
)
|
|||||
Income tax (expense) benefit
|
|
—
|
|
|
41
|
|
|
(39
|
)
|
|
—
|
|
|
2
|
|
|||||
Equity (deficit) in earnings in subsidiaries
|
|
(493
|
)
|
|
125
|
|
|
—
|
|
|
368
|
|
|
—
|
|
|||||
Net income (loss)
|
|
(547
|
)
|
|
(571
|
)
|
|
203
|
|
|
368
|
|
|
(547
|
)
|
|||||
Loss attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
13
|
|
|||||
NET INCOME (LOSS) ATTRIBUTABLE TO HOLDINGS’ SHAREHOLDERS
|
|
$
|
(547
|
)
|
|
$
|
(571
|
)
|
|
$
|
203
|
|
|
$
|
381
|
|
|
$
|
(534
|
)
|
millions
|
|
Parent
|
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||
Merchandise sales and services
|
|
$
|
—
|
|
|
$
|
7,772
|
|
|
$
|
1,978
|
|
|
$
|
(893
|
)
|
|
$
|
8,857
|
|
Cost of sales, buying and occupancy
|
|
—
|
|
|
5,940
|
|
|
1,124
|
|
|
(460
|
)
|
|
6,604
|
|
|||||
Selling and administrative
|
|
—
|
|
|
2,313
|
|
|
616
|
|
|
(433
|
)
|
|
2,496
|
|
|||||
Depreciation and amortization
|
|
—
|
|
|
162
|
|
|
49
|
|
|
—
|
|
|
211
|
|
|||||
Gain on sales of assets
|
|
—
|
|
|
(20
|
)
|
|
(6
|
)
|
|
—
|
|
|
(26
|
)
|
|||||
Total costs and expenses
|
|
—
|
|
|
8,395
|
|
|
1,783
|
|
|
(893
|
)
|
|
9,285
|
|
|||||
Operating income (loss)
|
|
—
|
|
|
(623
|
)
|
|
195
|
|
|
—
|
|
|
(428
|
)
|
|||||
Interest expense
|
|
(57
|
)
|
|
(98
|
)
|
|
(26
|
)
|
|
113
|
|
|
(68
|
)
|
|||||
Interest and investment income
|
|
—
|
|
|
11
|
|
|
109
|
|
|
(113
|
)
|
|
7
|
|
|||||
Other income
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|||||
Income (loss) before income taxes
|
|
(57
|
)
|
|
(710
|
)
|
|
280
|
|
|
—
|
|
|
(487
|
)
|
|||||
Income tax (expense) benefit
|
|
(39
|
)
|
|
74
|
|
|
(46
|
)
|
|
—
|
|
|
(11
|
)
|
|||||
Equity (deficit) in earnings in subsidiaries
|
|
(402
|
)
|
|
153
|
|
|
—
|
|
|
249
|
|
|
—
|
|
|||||
Net income (loss)
|
|
(498
|
)
|
|
(483
|
)
|
|
234
|
|
|
249
|
|
|
(498
|
)
|
|||||
Loss attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
NET INCOME (LOSS) ATTRIBUTABLE TO HOLDINGS’ SHAREHOLDERS
|
|
$
|
(498
|
)
|
|
$
|
(483
|
)
|
|
$
|
234
|
|
|
$
|
249
|
|
|
$
|
(498
|
)
|
millions
|
|
Parent
|
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||
Merchandise sales and services
|
|
$
|
—
|
|
|
$
|
22,930
|
|
|
$
|
5,263
|
|
|
$
|
(2,598
|
)
|
|
$
|
25,595
|
|
Cost of sales, buying and occupancy
|
|
—
|
|
|
17,646
|
|
|
2,973
|
|
|
(1,297
|
)
|
|
19,322
|
|
|||||
Selling and administrative
|
|
1
|
|
|
6,393
|
|
|
1,678
|
|
|
(1,301
|
)
|
|
6,771
|
|
|||||
Depreciation and amortization
|
|
—
|
|
|
424
|
|
|
135
|
|
|
—
|
|
|
559
|
|
|||||
Impairment charges
|
|
—
|
|
|
13
|
|
|
1
|
|
|
—
|
|
|
14
|
|
|||||
Gain on sales of assets
|
|
—
|
|
|
(95
|
)
|
|
(181
|
)
|
|
—
|
|
|
(276
|
)
|
|||||
Total costs and expenses
|
|
1
|
|
|
24,381
|
|
|
4,606
|
|
|
(2,598
|
)
|
|
26,390
|
|
|||||
Operating income (loss)
|
|
(1
|
)
|
|
(1,451
|
)
|
|
657
|
|
|
—
|
|
|
(795
|
)
|
|||||
Interest expense
|
|
(164
|
)
|
|
(285
|
)
|
|
(65
|
)
|
|
333
|
|
|
(181
|
)
|
|||||
Interest and investment income
|
|
—
|
|
|
28
|
|
|
334
|
|
|
(333
|
)
|
|
29
|
|
|||||
Income (loss) before income taxes
|
|
(165
|
)
|
|
(1,708
|
)
|
|
926
|
|
|
—
|
|
|
(947
|
)
|
|||||
Income tax (expense) benefit
|
|
—
|
|
|
127
|
|
|
(146
|
)
|
|
—
|
|
|
(19
|
)
|
|||||
Equity (deficit) in earnings in subsidiaries
|
|
(801
|
)
|
|
533
|
|
|
—
|
|
|
268
|
|
|
—
|
|
|||||
Net income (loss)
|
|
(966
|
)
|
|
(1,048
|
)
|
|
780
|
|
|
268
|
|
|
(966
|
)
|
|||||
Income attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(41
|
)
|
|
(41
|
)
|
|||||
NET INCOME (LOSS) ATTRIBUTABLE TO HOLDINGS’ SHAREHOLDERS
|
|
$
|
(966
|
)
|
|
$
|
(1,048
|
)
|
|
$
|
780
|
|
|
$
|
227
|
|
|
$
|
(1,007
|
)
|
millions
|
|
Parent
|
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||
Merchandise sales and services
|
|
$
|
—
|
|
|
$
|
24,504
|
|
|
$
|
5,748
|
|
|
$
|
(2,658
|
)
|
|
$
|
27,594
|
|
Cost of sales, buying and occupancy
|
|
—
|
|
|
18,315
|
|
|
3,257
|
|
|
(1,329
|
)
|
|
20,243
|
|
|||||
Selling and administrative
|
|
1
|
|
|
6,883
|
|
|
1,823
|
|
|
(1,329
|
)
|
|
7,378
|
|
|||||
Depreciation and amortization
|
|
—
|
|
|
478
|
|
|
147
|
|
|
—
|
|
|
625
|
|
|||||
Gain on sales of assets
|
|
—
|
|
|
(267
|
)
|
|
(169
|
)
|
|
—
|
|
|
(436
|
)
|
|||||
Total costs and expenses
|
|
1
|
|
|
25,409
|
|
|
5,058
|
|
|
(2,658
|
)
|
|
27,810
|
|
|||||
Operating income (loss)
|
|
(1
|
)
|
|
(905
|
)
|
|
690
|
|
|
—
|
|
|
(216
|
)
|
|||||
Interest expense
|
|
(169
|
)
|
|
(289
|
)
|
|
(80
|
)
|
|
339
|
|
|
(199
|
)
|
|||||
Interest and investment income
|
|
—
|
|
|
31
|
|
|
336
|
|
|
(339
|
)
|
|
28
|
|
|||||
Other income
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|||||
Income (loss) before income taxes
|
|
(170
|
)
|
|
(1,163
|
)
|
|
949
|
|
|
—
|
|
|
(384
|
)
|
|||||
Income tax (expense) benefit
|
|
—
|
|
|
109
|
|
|
(162
|
)
|
|
—
|
|
|
(53
|
)
|
|||||
Equity (deficit) in earnings in subsidiaries
|
|
(267
|
)
|
|
541
|
|
|
—
|
|
|
(274
|
)
|
|
—
|
|
|||||
Net income (loss)
|
|
(437
|
)
|
|
(513
|
)
|
|
787
|
|
|
(274
|
)
|
|
(437
|
)
|
|||||
Income attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
|||||
NET INCOME (LOSS) ATTRIBUTABLE TO HOLDINGS’ SHAREHOLDERS
|
|
$
|
(437
|
)
|
|
$
|
(513
|
)
|
|
$
|
787
|
|
|
$
|
(278
|
)
|
|
$
|
(441
|
)
|
millions
|
|
Parent
|
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income (loss)
|
|
$
|
(547
|
)
|
|
$
|
(571
|
)
|
|
$
|
203
|
|
|
$
|
368
|
|
|
$
|
(547
|
)
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Pension and postretirement adjustments, net of tax
|
|
—
|
|
|
42
|
|
|
4
|
|
|
—
|
|
|
46
|
|
|||||
Deferred gain on derivatives, net of tax
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Currency translation adjustments, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Unrealized net gain (loss), net of tax
|
|
—
|
|
|
1
|
|
|
28
|
|
|
(29
|
)
|
|
—
|
|
|||||
Total other comprehensive income (loss)
|
|
2
|
|
|
43
|
|
|
32
|
|
|
(29
|
)
|
|
48
|
|
|||||
Comprehensive income (loss)
|
|
(545
|
)
|
|
(528
|
)
|
|
235
|
|
|
339
|
|
|
(499
|
)
|
|||||
Comprehensive loss attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
11
|
|
|||||
Comprehensive income (loss) attributable to Holdings’ shareholders
|
|
$
|
(545
|
)
|
|
$
|
(528
|
)
|
|
$
|
235
|
|
|
$
|
350
|
|
|
$
|
(488
|
)
|
millions
|
|
Parent
|
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income (loss)
|
|
$
|
(498
|
)
|
|
$
|
(483
|
)
|
|
$
|
234
|
|
|
$
|
249
|
|
|
$
|
(498
|
)
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Pension and postretirement adjustments, net of tax
|
|
—
|
|
|
42
|
|
|
4
|
|
|
—
|
|
|
46
|
|
|||||
Currency translation adjustments, net of tax
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|||||
Unrealized net gain (loss), net of tax
|
|
—
|
|
|
(1
|
)
|
|
2
|
|
|
(1
|
)
|
|
—
|
|
|||||
Total other comprehensive income (loss)
|
|
—
|
|
|
41
|
|
|
10
|
|
|
(1
|
)
|
|
50
|
|
|||||
Comprehensive income (loss)
|
|
(498
|
)
|
|
(442
|
)
|
|
244
|
|
|
248
|
|
|
(448
|
)
|
|||||
Comprehensive loss attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Comprehensive income (loss) attributable to Holdings’ shareholders
|
|
$
|
(498
|
)
|
|
$
|
(442
|
)
|
|
$
|
244
|
|
|
$
|
248
|
|
|
$
|
(448
|
)
|
millions
|
|
Parent
|
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income (loss)
|
|
$
|
(966
|
)
|
|
$
|
(1,048
|
)
|
|
$
|
780
|
|
|
$
|
268
|
|
|
$
|
(966
|
)
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Pension and postretirement adjustments, net of tax
|
|
—
|
|
|
126
|
|
|
14
|
|
|
—
|
|
|
140
|
|
|||||
Deferred gain on derivatives, net of tax
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Currency translation adjustments, net of tax
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
(27
|
)
|
|||||
Unrealized net gain (loss), net of tax
|
|
—
|
|
|
(1
|
)
|
|
(16
|
)
|
|
17
|
|
|
—
|
|
|||||
Total other comprehensive income (loss)
|
|
2
|
|
|
125
|
|
|
(29
|
)
|
|
17
|
|
|
115
|
|
|||||
Comprehensive income (loss)
|
|
(964
|
)
|
|
(923
|
)
|
|
751
|
|
|
285
|
|
|
(851
|
)
|
|||||
Comprehensive income attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(36
|
)
|
|
(36
|
)
|
|||||
Comprehensive income (loss) attributable to Holdings’ shareholders
|
|
$
|
(964
|
)
|
|
$
|
(923
|
)
|
|
$
|
751
|
|
|
$
|
249
|
|
|
$
|
(887
|
)
|
millions
|
|
Parent
|
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income (loss)
|
|
$
|
(437
|
)
|
|
$
|
(513
|
)
|
|
$
|
787
|
|
|
$
|
(274
|
)
|
|
$
|
(437
|
)
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Pension and postretirement adjustments, net of tax
|
|
—
|
|
|
125
|
|
|
13
|
|
|
—
|
|
|
138
|
|
|||||
Deferred gain on derivatives, net of tax
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||
Currency translation adjustments, net of tax
|
|
6
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
4
|
|
|||||
Unrealized net gain (loss), net of tax
|
|
—
|
|
|
(270
|
)
|
|
(94
|
)
|
|
364
|
|
|
—
|
|
|||||
Total other comprehensive income (loss)
|
|
11
|
|
|
(145
|
)
|
|
(83
|
)
|
|
364
|
|
|
147
|
|
|||||
Comprehensive income (loss)
|
|
(426
|
)
|
|
(658
|
)
|
|
704
|
|
|
90
|
|
|
(290
|
)
|
|||||
Comprehensive income attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
|||||
Comprehensive income (loss) attributable to Holdings’ shareholders
|
|
$
|
(426
|
)
|
|
$
|
(658
|
)
|
|
$
|
704
|
|
|
$
|
85
|
|
|
$
|
(295
|
)
|
millions
|
Parent
|
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||
Net cash provided by (used in) operating activities
|
$
|
—
|
|
|
$
|
(2,348
|
)
|
|
$
|
676
|
|
|
$
|
—
|
|
|
$
|
(1,672
|
)
|
Proceeds from sales of property and investments
|
—
|
|
|
112
|
|
|
188
|
|
|
—
|
|
|
300
|
|
|||||
Net increase in investments and restricted cash
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
Purchases of property and equipment
|
—
|
|
|
(173
|
)
|
|
(28
|
)
|
|
—
|
|
|
(201
|
)
|
|||||
Net investing with Affiliates
|
—
|
|
|
—
|
|
|
191
|
|
|
(191
|
)
|
|
—
|
|
|||||
Net cash provided by (used in) investing activities
|
—
|
|
|
(61
|
)
|
|
352
|
|
|
(191
|
)
|
|
100
|
|
|||||
Proceeds from debt issuances
|
—
|
|
|
990
|
|
|
4
|
|
|
—
|
|
|
994
|
|
|||||
Repayments of long-term debt
|
—
|
|
|
(55
|
)
|
|
(10
|
)
|
|
—
|
|
|
(65
|
)
|
|||||
Increase in short-term borrowings, primarily 90 days or less
|
—
|
|
|
657
|
|
|
—
|
|
|
—
|
|
|
657
|
|
|||||
Debt issue costs
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|||||
Intercompany dividend
|
416
|
|
|
22
|
|
|
(438
|
)
|
|
—
|
|
|
—
|
|
|||||
Net borrowing with Affiliates
|
(416
|
)
|
|
843
|
|
|
(618
|
)
|
|
191
|
|
|
—
|
|
|||||
Net cash provided by (used in) financing activities
|
—
|
|
|
2,443
|
|
|
(1,062
|
)
|
|
191
|
|
|
1,572
|
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
|||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
—
|
|
|
34
|
|
|
(44
|
)
|
|
—
|
|
|
(10
|
)
|
|||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
|
—
|
|
|
320
|
|
|
289
|
|
|
—
|
|
|
609
|
|
|||||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$
|
—
|
|
|
$
|
354
|
|
|
$
|
245
|
|
|
$
|
—
|
|
|
$
|
599
|
|
millions
|
Parent
|
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||
Net cash provided by (used in) operating activities
|
$
|
—
|
|
|
$
|
(1,816
|
)
|
|
$
|
535
|
|
|
$
|
—
|
|
|
$
|
(1,281
|
)
|
Proceeds from sales of property and investments
|
—
|
|
|
333
|
|
|
178
|
|
|
—
|
|
|
511
|
|
|||||
Net decrease in investments and restricted cash
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
|||||
Purchases of property and equipment
|
—
|
|
|
(199
|
)
|
|
(58
|
)
|
|
—
|
|
|
(257
|
)
|
|||||
Net investing with Affiliates
|
—
|
|
|
—
|
|
|
(131
|
)
|
|
131
|
|
|
—
|
|
|||||
Net cash provided by (used in) investing activities
|
—
|
|
|
134
|
|
|
(15
|
)
|
|
131
|
|
|
250
|
|
|||||
Proceeds from debt issuances
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|||||
Repayments of long-term debt
|
—
|
|
|
(130
|
)
|
|
(117
|
)
|
|
—
|
|
|
(247
|
)
|
|||||
Increase in short-term borrowings, primarily 90 days or less
|
—
|
|
|
715
|
|
|
—
|
|
|
—
|
|
|
715
|
|
|||||
Sears Hometown and Outlet Stores, Inc. pre-separation funding
|
—
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|||||
Intercompany dividend
|
100
|
|
|
(100
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Proceeds from the sale of Sears Hometown and Outlet Stores, Inc.
|
347
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
347
|
|
|||||
Debt issuance costs
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||||
Purchase of Sears Canada shares
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
|||||
Net borrowing with Affiliates
|
(447
|
)
|
|
1,146
|
|
|
(568
|
)
|
|
(131
|
)
|
|
—
|
|
|||||
Net cash provided by (used in) financing activities
|
—
|
|
|
1,728
|
|
|
(692
|
)
|
|
(131
|
)
|
|
905
|
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
—
|
|
|
46
|
|
|
(171
|
)
|
|
—
|
|
|
(125
|
)
|
|||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
|
—
|
|
|
336
|
|
|
411
|
|
|
—
|
|
|
747
|
|
|||||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$
|
—
|
|
|
$
|
382
|
|
|
$
|
240
|
|
|
$
|
—
|
|
|
$
|
622
|
|
|
13 Weeks Ended
|
|
39 Weeks Ended
|
||||||||||||
millions, except per share data
|
November 2,
2013 |
|
October 27,
2012 |
|
November 2,
2013 |
|
October 27,
2012 |
||||||||
REVENUES
|
|
|
|
|
|
|
|
||||||||
Merchandise sales and services
|
$
|
8,272
|
|
|
$
|
8,857
|
|
|
$
|
25,595
|
|
|
$
|
27,594
|
|
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
||||||||
Cost of sales, buying and occupancy
|
6,341
|
|
|
6,604
|
|
|
19,322
|
|
|
20,243
|
|
||||
Gross margin dollars
|
1,931
|
|
|
2,253
|
|
|
6,273
|
|
|
7,351
|
|
||||
Gross margin rate
|
23.3
|
%
|
|
25.4
|
%
|
|
24.5
|
%
|
|
26.6
|
%
|
||||
Selling and administrative
|
2,262
|
|
|
2,496
|
|
|
6,771
|
|
|
7,378
|
|
||||
Selling and administrative expense as a percentage of total revenues
|
27.3
|
%
|
|
28.2
|
%
|
|
26.5
|
%
|
|
26.7
|
%
|
||||
Depreciation and amortization
|
181
|
|
|
211
|
|
|
559
|
|
|
625
|
|
||||
Impairment charges
|
6
|
|
|
—
|
|
|
14
|
|
|
—
|
|
||||
Gain on sales of assets
|
(21
|
)
|
|
(26
|
)
|
|
(276
|
)
|
|
(436
|
)
|
||||
Total costs and expenses
|
8,769
|
|
|
9,285
|
|
|
26,390
|
|
|
27,810
|
|
||||
Operating loss
|
(497
|
)
|
|
(428
|
)
|
|
(795
|
)
|
|
(216
|
)
|
||||
Interest expense
|
(61
|
)
|
|
(68
|
)
|
|
(181
|
)
|
|
(199
|
)
|
||||
Interest and investment income
|
8
|
|
|
7
|
|
|
29
|
|
|
28
|
|
||||
Other income
|
1
|
|
|
2
|
|
|
—
|
|
|
3
|
|
||||
Loss before income taxes
|
(549
|
)
|
|
(487
|
)
|
|
(947
|
)
|
|
(384
|
)
|
||||
Income tax (expense) benefit
|
2
|
|
|
(11
|
)
|
|
(19
|
)
|
|
(53
|
)
|
||||
Net loss
|
(547
|
)
|
|
(498
|
)
|
|
(966
|
)
|
|
(437
|
)
|
||||
(Income) loss attributable to noncontrolling interests
|
13
|
|
|
—
|
|
|
(41
|
)
|
|
(4
|
)
|
||||
NET LOSS ATTRIBUTABLE TO HOLDINGS’ SHAREHOLDERS
|
$
|
(534
|
)
|
|
$
|
(498
|
)
|
|
$
|
(1,007
|
)
|
|
$
|
(441
|
)
|
NET LOSS PER COMMON SHARE ATTRIBUTABLE TO HOLDINGS’ SHAREHOLDERS
|
|
|
|
|
|
|
|
||||||||
Basic loss per share
|
$
|
(5.03
|
)
|
|
$
|
(4.70
|
)
|
|
$
|
(9.49
|
)
|
|
$
|
(4.16
|
)
|
Diluted loss per share
|
$
|
(5.03
|
)
|
|
$
|
(4.70
|
)
|
|
$
|
(9.49
|
)
|
|
$
|
(4.16
|
)
|
Basic weighted average common shares outstanding
|
106.1
|
|
|
105.9
|
|
|
106.1
|
|
|
105.9
|
|
||||
Diluted weighted average common shares outstanding
|
106.1
|
|
|
105.9
|
|
|
106.1
|
|
|
105.9
|
|
•
|
EBITDA excludes the effects of financings and investing activities by eliminating the effects of interest and depreciation costs;
|
•
|
Management considers gains/(losses) on the sale of assets to result from investing decisions rather than ongoing operations; and
|
•
|
Other significant items, while periodically affecting our results, may vary significantly from period to period and have a disproportionate effect in a given period, which affects comparability of results. Adjustments to EBITDA include impairment charges related to fixed assets and intangible assets, closed store and severance charges, domestic pension expense and the SHO separation. We have adjusted our results for these items to make our statements more comparable and therefore more useful to investors as the items are not representative of our ongoing operations and reflect past investment decisions.
|
|
13 Weeks Ended
|
|
39 Weeks Ended
|
||||||||||||
millions
|
November 2,
2013 |
|
October 27,
2012 |
|
November 2,
2013 |
|
October 27,
2012 |
||||||||
Net loss attributable to SHC per statement of operations
|
$
|
(534
|
)
|
|
$
|
(498
|
)
|
|
$
|
(1,007
|
)
|
|
$
|
(441
|
)
|
Income (loss) attributable to noncontrolling interests
|
(13
|
)
|
|
—
|
|
|
41
|
|
|
4
|
|
||||
Income tax expense (benefit)
|
(2
|
)
|
|
11
|
|
|
19
|
|
|
53
|
|
||||
Interest expense
|
61
|
|
|
68
|
|
|
181
|
|
|
199
|
|
||||
Interest and investment income
|
(8
|
)
|
|
(7
|
)
|
|
(29
|
)
|
|
(28
|
)
|
||||
Other income
|
(1
|
)
|
|
(2
|
)
|
|
—
|
|
|
(3
|
)
|
||||
Operating loss
|
(497
|
)
|
|
(428
|
)
|
|
(795
|
)
|
|
(216
|
)
|
||||
Depreciation and amortization
|
181
|
|
|
211
|
|
|
559
|
|
|
625
|
|
||||
Gain on sales of assets
|
(21
|
)
|
|
(26
|
)
|
|
(276
|
)
|
|
(436
|
)
|
||||
Before excluded items
|
(337
|
)
|
|
(243
|
)
|
|
(512
|
)
|
|
(27
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Domestic pension expense
|
41
|
|
|
42
|
|
|
122
|
|
|
124
|
|
||||
Closed store reserve and severance
|
4
|
|
|
38
|
|
|
27
|
|
|
90
|
|
||||
Impairment charges
|
6
|
|
|
—
|
|
|
14
|
|
|
—
|
|
||||
Transaction costs
|
—
|
|
|
7
|
|
|
—
|
|
|
10
|
|
||||
Adjusted EBITDA
|
(286
|
)
|
|
(156
|
)
|
|
(349
|
)
|
|
197
|
|
||||
|
|
|
|
|
|
|
|
||||||||
SHO separation
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
(90
|
)
|
||||
Adjusted EBITDA as defined
|
$
|
(286
|
)
|
|
$
|
(172
|
)
|
|
$
|
(349
|
)
|
|
$
|
107
|
|
% to revenues
|
(3.5
|
)%
|
|
(2.0
|
)%
|
|
(1.4
|
)%
|
|
0.4
|
%
|
|
13 Weeks Ended
|
||||||||||||||||||||||||
|
November 2, 2013
|
|
October 27, 2012
|
||||||||||||||||||||||
millions
|
Kmart
|
Sears Domestic
|
Sears Canada
|
Sears Holdings
|
|
Kmart
|
Sears Domestic
|
Sears Canada
|
Sears Holdings
|
||||||||||||||||
Operating loss per statement of operations
|
$
|
(171
|
)
|
$
|
(279
|
)
|
$
|
(47
|
)
|
$
|
(497
|
)
|
|
$
|
(164
|
)
|
$
|
(245
|
)
|
$
|
(19
|
)
|
$
|
(428
|
)
|
Depreciation and amortization
|
31
|
|
128
|
|
22
|
|
181
|
|
|
39
|
|
145
|
|
27
|
|
211
|
|
||||||||
Gain on sales of assets
|
(19
|
)
|
(2
|
)
|
—
|
|
(21
|
)
|
|
(3
|
)
|
(17
|
)
|
(6
|
)
|
(26
|
)
|
||||||||
Before excluded items
|
(159
|
)
|
(153
|
)
|
(25
|
)
|
(337
|
)
|
|
(128
|
)
|
(117
|
)
|
2
|
|
(243
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Domestic pension expense
|
—
|
|
41
|
|
—
|
|
41
|
|
|
—
|
|
42
|
|
—
|
|
42
|
|
||||||||
Closed store reserve and severance
|
17
|
|
(32
|
)
|
19
|
|
4
|
|
|
27
|
|
8
|
|
3
|
|
38
|
|
||||||||
Impairment charges
|
3
|
|
2
|
|
1
|
|
6
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||
Transaction costs
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
4
|
|
3
|
|
7
|
|
||||||||
Adjusted EBITDA
|
(139
|
)
|
(142
|
)
|
(5
|
)
|
(286
|
)
|
|
(101
|
)
|
(63
|
)
|
8
|
|
(156
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
SHO separation
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
(16
|
)
|
—
|
|
(16
|
)
|
||||||||
Adjusted EBITDA as defined
|
$
|
(139
|
)
|
$
|
(142
|
)
|
$
|
(5
|
)
|
$
|
(286
|
)
|
|
$
|
(101
|
)
|
$
|
(79
|
)
|
$
|
8
|
|
$
|
(172
|
)
|
% to revenues
|
(4.8
|
)%
|
(3.2
|
)%
|
(0.5
|
)%
|
(3.5
|
)%
|
|
(3.3
|
)%
|
(1.9
|
)%
|
0.8
|
%
|
(2.0
|
)%
|
|
39 Weeks Ended
|
||||||||||||||||||||||||
|
November 2, 2013
|
|
October 27, 2012
|
||||||||||||||||||||||
millions
|
Kmart
|
Sears Domestic
|
Sears Canada
|
Sears Holdings
|
|
Kmart
|
Sears Domestic
|
Sears Canada
|
Sears Holdings
|
||||||||||||||||
Operating income (loss) per statement of operations
|
$
|
(255
|
)
|
$
|
(606
|
)
|
$
|
66
|
|
$
|
(795
|
)
|
|
$
|
(98
|
)
|
$
|
(206
|
)
|
$
|
88
|
|
$
|
(216
|
)
|
Depreciation and amortization
|
97
|
|
390
|
|
72
|
|
559
|
|
|
110
|
|
437
|
|
78
|
|
625
|
|
||||||||
Gain on sales of assets
|
(47
|
)
|
(48
|
)
|
(181
|
)
|
(276
|
)
|
|
(17
|
)
|
(250
|
)
|
(169
|
)
|
(436
|
)
|
||||||||
Before excluded items
|
(205
|
)
|
(264
|
)
|
(43
|
)
|
(512
|
)
|
|
(5
|
)
|
(19
|
)
|
(3
|
)
|
(27
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Domestic pension expense
|
—
|
|
122
|
|
—
|
|
122
|
|
|
—
|
|
124
|
|
—
|
|
124
|
|
||||||||
Closed store reserve and severance
|
33
|
|
(27
|
)
|
21
|
|
27
|
|
|
38
|
|
47
|
|
5
|
|
90
|
|
||||||||
Impairment charges
|
3
|
|
10
|
|
1
|
|
14
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||
Transaction costs
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
7
|
|
3
|
|
10
|
|
||||||||
Adjusted EBITDA
|
(169
|
)
|
(159
|
)
|
(21
|
)
|
(349
|
)
|
|
33
|
|
159
|
|
5
|
|
197
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
SHO separation
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
(90
|
)
|
—
|
|
(90
|
)
|
||||||||
Adjusted EBITDA as defined
|
$
|
(169
|
)
|
$
|
(159
|
)
|
$
|
(21
|
)
|
$
|
(349
|
)
|
|
$
|
33
|
|
$
|
69
|
|
$
|
5
|
|
$
|
107
|
|
% to revenues
|
(1.8
|
)%
|
(1.2
|
)%
|
(0.8
|
)%
|
(1.4
|
)%
|
|
0.3
|
%
|
0.5
|
%
|
0.2
|
%
|
0.4
|
%
|
•
|
Impairment charges – Accounting standards require the Company to evaluate the carrying value of fixed assets, goodwill and intangible assets for impairment. As a result of the Company’s analysis, we have recorded impairment charges related to certain fixed asset balances.
|
•
|
Closed store reserve and severance – We are transforming our Company to a less asset-intensive business model. Throughout this transformation, we continue to make choices related to our stores, which could result in sales, closures, lease terminations or a variety of other decisions.
|
•
|
Domestic pension expense – Contributions to our pension plans remain a significant use of our cash on an annual basis. Cash contributions to our pension and postretirement plans are separately disclosed on the cash flow statement. While the Company's pension plan is frozen, and thus associates do not currently earn pension benefits, we have a legacy pension obligation for past service performed by Kmart and Sears associates. The annual pension expense included in our statement of operations related to these legacy domestic pension plans was relatively minimal in years prior to 2009. However, due to the severe decline in the capital markets that occurred in the latter part of 2008, our domestic pension expense was $165 million in 2012, $74 million in 2011 and $120 million in 2010. Pension expense is comprised of interest cost, expected return on plan assets and amortization of experience losses. This adjustment eliminates the entire pension expense from the statement of operations to improve comparability. Pension expense is included in the determination of Net Income. The components of the adjustments to EBITDA related to domestic pension expense were as follows:
|
|
13 Weeks Ended
|
|
39 Weeks Ended
|
||||||||||||
millions
|
November 2,
2013 |
|
October 27,
2012 |
|
November 2,
2013 |
|
October 27,
2012 |
||||||||
Components of net periodic expense:
|
|
|
|
|
|
|
|
||||||||
Interest cost
|
$
|
55
|
|
|
$
|
73
|
|
|
$
|
164
|
|
|
$
|
218
|
|
Expected return on plan assets
|
(56
|
)
|
|
(72
|
)
|
|
(168
|
)
|
|
(218
|
)
|
||||
Amortization of experience losses
|
42
|
|
|
41
|
|
|
126
|
|
|
124
|
|
||||
Net periodic expense
|
$
|
41
|
|
|
$
|
42
|
|
|
$
|
122
|
|
|
$
|
124
|
|
•
|
SHO separation – The results of the Sears Hometown and Outlet businesses that were included in our results of operations prior to the separation.
|
|
13 Weeks Ended November 2, 2013
|
||||||||||||||
|
|
Adjustments
|
|
||||||||||||
millions, except per share data
|
GAAP
|
Domestic
Pension Expense |
Closed Store Reserve, Store Impairments and Severance
|
Tax Matters
|
As Adjusted
|
||||||||||
Gross margin impact
|
$
|
1,931
|
|
$
|
—
|
|
$
|
13
|
|
$
|
—
|
|
$
|
1,944
|
|
Selling and administrative impact
|
2,262
|
|
(41
|
)
|
9
|
|
—
|
|
2,230
|
|
|||||
Depreciation and amortization impact
|
181
|
|
—
|
|
(3
|
)
|
—
|
|
178
|
|
|||||
Impairment charges impact
|
6
|
|
—
|
|
(6
|
)
|
—
|
|
—
|
|
|||||
Operating loss impact
|
(497
|
)
|
41
|
|
13
|
|
—
|
|
(443
|
)
|
|||||
Income tax benefit impact
|
2
|
|
(15
|
)
|
(5
|
)
|
204
|
|
186
|
|
|||||
Loss attributable to noncontrolling interest impact
|
13
|
|
—
|
|
(10
|
)
|
—
|
|
3
|
|
|||||
After tax and noncontrolling interest impact
|
(534
|
)
|
26
|
|
(2
|
)
|
204
|
|
(306
|
)
|
|||||
Diluted loss per share impact
|
$
|
(5.03
|
)
|
$
|
0.25
|
|
$
|
(0.02
|
)
|
$
|
1.92
|
|
$
|
(2.88
|
)
|
|
13 Weeks Ended October 27, 2012
|
||||||||||||||||||||||||||
|
|
Adjustments
|
|
|
|
||||||||||||||||||||||
millions, except per share data
|
GAAP
|
Domestic
Pension Expense |
Closed Store
Reserve and Severance |
Gain on Sales of Assets
|
Transaction Costs
|
Tax Matters
|
As Adjusted - Reported
|
SHO Separation
|
As Adjusted
(1)
|
||||||||||||||||||
Gross margin impact
|
$
|
2,253
|
|
$
|
—
|
|
$
|
32
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
2,285
|
|
$
|
(113
|
)
|
$
|
2,172
|
|
Selling and administrative impact
|
2,496
|
|
(42
|
)
|
(6
|
)
|
—
|
|
(7
|
)
|
—
|
|
2,441
|
|
(97
|
)
|
2,344
|
|
|||||||||
Depreciation and amortization impact
|
211
|
|
—
|
|
(9
|
)
|
—
|
|
—
|
|
—
|
|
202
|
|
(2
|
)
|
200
|
|
|||||||||
Gain on sales of assets impact
|
(26
|
)
|
—
|
|
—
|
|
12
|
|
—
|
|
—
|
|
(14
|
)
|
—
|
|
(14
|
)
|
|||||||||
Operating loss impact
|
(428
|
)
|
42
|
|
47
|
|
(12
|
)
|
7
|
|
—
|
|
(344
|
)
|
(14
|
)
|
(358
|
)
|
|||||||||
Income tax expense impact
|
(11
|
)
|
(16
|
)
|
(18
|
)
|
5
|
|
(3
|
)
|
235
|
|
192
|
|
6
|
|
198
|
|
|||||||||
After tax and noncontrolling interest impact
|
(498
|
)
|
26
|
|
29
|
|
(7
|
)
|
4
|
|
235
|
|
(211
|
)
|
(8
|
)
|
(219
|
)
|
|||||||||
Diluted loss per share impact
|
$
|
(4.70
|
)
|
$
|
0.25
|
|
$
|
0.27
|
|
$
|
(0.07
|
)
|
$
|
0.04
|
|
$
|
2.22
|
|
$
|
(1.99
|
)
|
$
|
(0.08
|
)
|
$
|
(2.07
|
)
|
|
39 Weeks Ended November 2, 2013
|
|||||||||||||||||
|
|
Adjustments
|
|
|||||||||||||||
millions, except per share data
|
GAAP
|
Domestic
Pension Expense |
Closed Store Reserve, Store Impairments and Severance
|
Gain on Sales of Assets
|
Tax Matters
|
As Adjusted
|
||||||||||||
Gross margin impact
|
$
|
6,273
|
|
$
|
—
|
|
$
|
28
|
|
$
|
—
|
|
$
|
—
|
|
$
|
6,301
|
|
Selling and administrative impact
|
6,771
|
|
(122
|
)
|
1
|
|
—
|
|
—
|
|
6,650
|
|
||||||
Depreciation and amortization impact
|
559
|
|
—
|
|
(5
|
)
|
—
|
|
—
|
|
554
|
|
||||||
Impairment charges impact
|
14
|
|
—
|
|
(14
|
)
|
—
|
|
—
|
|
—
|
|
||||||
Gain on sales of assets impact
|
(276
|
)
|
—
|
|
—
|
|
235
|
|
—
|
|
(41
|
)
|
||||||
Operating loss impact
|
(795
|
)
|
122
|
|
46
|
|
(235
|
)
|
—
|
|
(862
|
)
|
||||||
Income tax expense impact
|
(19
|
)
|
(45
|
)
|
(18
|
)
|
89
|
|
373
|
|
380
|
|
||||||
Income attributable to noncontrolling interest impact
|
(41
|
)
|
—
|
|
(11
|
)
|
88
|
|
—
|
|
36
|
|
||||||
After tax and noncontrolling interest impact
|
(1,007
|
)
|
77
|
|
17
|
|
(58
|
)
|
373
|
|
(598
|
)
|
||||||
Diluted loss per share impact
|
$
|
(9.49
|
)
|
$
|
0.73
|
|
$
|
0.16
|
|
$
|
(0.55
|
)
|
$
|
3.51
|
|
$
|
(5.64
|
)
|
|
39 Weeks Ended October 27, 2012
|
||||||||||||||||||||||||||
|
|
Adjustments
|
|
|
|
||||||||||||||||||||||
millions, except per share data
|
GAAP
|
Domestic
Pension Expense |
Closed Store
Reserve and Severance |
Gain on Sales of Assets
|
Transaction Costs
|
Tax Matters
|
As Adjusted - Reported
|
SHO Separation
|
As Adjusted
(1)
|
||||||||||||||||||
Gross margin impact
|
$
|
7,351
|
|
$
|
—
|
|
$
|
32
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
7,383
|
|
$
|
(432
|
)
|
$
|
6,951
|
|
Selling and administrative impact
|
7,378
|
|
(124
|
)
|
(58
|
)
|
—
|
|
(10
|
)
|
—
|
|
7,186
|
|
(343
|
)
|
6,843
|
|
|||||||||
Depreciation and amortization impact
|
625
|
|
—
|
|
(16
|
)
|
—
|
|
—
|
|
—
|
|
609
|
|
(6
|
)
|
603
|
|
|||||||||
Gain on sales of assets impact
|
(436
|
)
|
—
|
|
—
|
|
398
|
|
—
|
|
—
|
|
(38
|
)
|
—
|
|
(38
|
)
|
|||||||||
Operating loss impact
|
(216
|
)
|
124
|
|
106
|
|
(398
|
)
|
10
|
|
—
|
|
(374
|
)
|
(83
|
)
|
(457
|
)
|
|||||||||
Income tax expense impact
|
(53
|
)
|
(47
|
)
|
(40
|
)
|
149
|
|
(4
|
)
|
198
|
|
203
|
|
33
|
|
236
|
|
|||||||||
Income attributable to noncontrolling interest impact
|
(4
|
)
|
—
|
|
—
|
|
8
|
|
—
|
|
—
|
|
4
|
|
—
|
|
4
|
|
|||||||||
After tax and noncontrolling interest impact
|
(441
|
)
|
77
|
|
66
|
|
(241
|
)
|
6
|
|
198
|
|
(335
|
)
|
(51
|
)
|
(386
|
)
|
|||||||||
Diluted loss per share impact
|
$
|
(4.16
|
)
|
$
|
0.73
|
|
$
|
0.62
|
|
$
|
(2.28
|
)
|
$
|
0.06
|
|
$
|
1.87
|
|
$
|
(3.16
|
)
|
$
|
(0.48
|
)
|
$
|
(3.64
|
)
|
•
|
Gains on sales of assets – We have recorded significant gains on sales of assets which were primarily attributable to several real estate transactions. Management considers these gains on sale of assets to result from investing decisions rather than ongoing operations.
|
•
|
Tax Matters – In 2011, we recorded a non-cash charge to establish a valuation allowance against substantially all of our domestic deferred tax assets. Accounting rules generally require that a valuation reserve be established when income has not been generated over a three-year cumulative period to support the deferred tax asset. While an accounting loss was recorded, we believe no economic loss has occurred as these net operating losses and tax benefits remain available to reduce future taxes as income is generated in subsequent periods. As this valuation allowance has a significant impact on the effective tax rate, we have adjusted our results to reflect a standard effective tax rate for the Company.
|
|
13 Weeks Ended
|
|
39 Weeks Ended
|
||||||||||||
millions, except number of stores
|
November 2,
2013 |
|
October 27,
2012 |
|
November 2,
2013 |
|
October 27,
2012 |
||||||||
Merchandise sales and services
|
$
|
2,916
|
|
|
$
|
3,081
|
|
|
$
|
9,187
|
|
|
$
|
9,870
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of sales, buying and occupancy
|
2,327
|
|
|
2,409
|
|
|
7,184
|
|
|
7,560
|
|
||||
Gross margin dollars
|
589
|
|
|
672
|
|
|
2,003
|
|
|
2,310
|
|
||||
Gross margin rate
|
20.2
|
%
|
|
21.8
|
%
|
|
21.8
|
%
|
|
23.4
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Selling and administrative
|
745
|
|
|
800
|
|
|
2,205
|
|
|
2,315
|
|
||||
Selling and administrative expense rate
|
25.5
|
%
|
|
26.0
|
%
|
|
24.0
|
%
|
|
23.5
|
%
|
||||
Depreciation and amortization
|
31
|
|
|
39
|
|
|
97
|
|
|
110
|
|
||||
Impairment charges
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
||||
Gain on sales of assets
|
(19
|
)
|
|
(3
|
)
|
|
(47
|
)
|
|
(17
|
)
|
||||
Total costs and expenses
|
3,087
|
|
|
3,245
|
|
|
9,442
|
|
|
9,968
|
|
||||
Operating loss
|
$
|
(171
|
)
|
|
$
|
(164
|
)
|
|
$
|
(255
|
)
|
|
$
|
(98
|
)
|
Adjusted EBITDA
|
$
|
(139
|
)
|
|
$
|
(101
|
)
|
|
$
|
(169
|
)
|
|
$
|
33
|
|
Number of stores
|
|
|
|
|
1,183
|
|
|
1,252
|
|
|
13 Weeks Ended
|
|
39 Weeks Ended
|
||||||||||||
millions, except number of stores
|
November 2,
2013 |
|
October 27,
2012 |
|
November 2,
2013 |
|
October 27,
2012 |
||||||||
Merchandise sales and services
|
$
|
4,419
|
|
|
$
|
4,724
|
|
|
$
|
13,709
|
|
|
$
|
14,724
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of sales, buying and occupancy
|
3,326
|
|
|
3,448
|
|
|
10,163
|
|
|
10,546
|
|
||||
Gross margin dollars
|
1,093
|
|
|
1,276
|
|
|
3,546
|
|
|
4,178
|
|
||||
Gross margin rate
|
24.7
|
%
|
|
27.0
|
%
|
|
25.9
|
%
|
|
28.4
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Selling and administrative
|
1,244
|
|
|
1,393
|
|
|
3,800
|
|
|
4,197
|
|
||||
Selling and administrative expense rate
|
28.2
|
%
|
|
29.5
|
%
|
|
27.7
|
%
|
|
28.5
|
%
|
||||
Depreciation and amortization
|
128
|
|
|
145
|
|
|
390
|
|
|
437
|
|
||||
Impairment charges
|
2
|
|
|
—
|
|
|
10
|
|
|
—
|
|
||||
Gain on sales of assets
|
(2
|
)
|
|
(17
|
)
|
|
(48
|
)
|
|
(250
|
)
|
||||
Total costs and expenses
|
4,698
|
|
|
4,969
|
|
|
14,315
|
|
|
14,930
|
|
||||
Operating loss
|
$
|
(279
|
)
|
|
$
|
(245
|
)
|
|
$
|
(606
|
)
|
|
$
|
(206
|
)
|
Adjusted EBITDA
|
$
|
(142
|
)
|
|
$
|
(63
|
)
|
|
$
|
(159
|
)
|
|
$
|
159
|
|
SHO separation
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
(90
|
)
|
||||
Adjusted EBITDA as defined
(1)
|
$
|
(142
|
)
|
|
$
|
(79
|
)
|
|
$
|
(159
|
)
|
|
$
|
69
|
|
Number of:
|
|
|
|
|
|
|
|
||||||||
Full-line stores
|
|
|
|
|
785
|
|
|
814
|
|
||||||
Specialty stores
|
|
|
|
|
50
|
|
|
52
|
|
||||||
Total Domestic Sears Stores
|
|
|
|
|
835
|
|
|
866
|
|
|
13 Weeks Ended
|
|
39 Weeks Ended
|
||||||||||||
millions, except number of stores
|
November 2,
2013 |
|
October 27,
2012 |
|
November 2,
2013 |
|
October 27,
2012 |
||||||||
Merchandise sales and services
|
$
|
937
|
|
|
$
|
1,052
|
|
|
$
|
2,699
|
|
|
$
|
3,000
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of sales, buying and occupancy
|
688
|
|
|
747
|
|
|
1,975
|
|
|
2,137
|
|
||||
Gross margin dollars
|
249
|
|
|
305
|
|
|
724
|
|
|
863
|
|
||||
Gross margin rate
|
26.6
|
%
|
|
29.0
|
%
|
|
26.8
|
%
|
|
28.8
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Selling and administrative
|
273
|
|
|
303
|
|
|
766
|
|
|
866
|
|
||||
Selling and administrative expense rate
|
29.1
|
%
|
|
28.8
|
%
|
|
28.4
|
%
|
|
28.9
|
%
|
||||
Depreciation and amortization
|
22
|
|
|
27
|
|
|
72
|
|
|
78
|
|
||||
Impairment charges
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Gain on sales of assets
|
—
|
|
|
(6
|
)
|
|
(181
|
)
|
|
(169
|
)
|
||||
Total costs and expenses
|
984
|
|
|
1,071
|
|
|
2,633
|
|
|
2,912
|
|
||||
Operating income (loss)
|
$
|
(47
|
)
|
|
$
|
(19
|
)
|
|
$
|
66
|
|
|
$
|
88
|
|
Adjusted EBITDA
|
$
|
(5
|
)
|
|
$
|
8
|
|
|
$
|
(21
|
)
|
|
$
|
5
|
|
Number of:
|
|
|
|
|
|
|
|
||||||||
Full-line stores
|
|
|
|
|
118
|
|
|
118
|
|
||||||
Specialty stores
|
|
|
|
|
338
|
|
|
365
|
|
||||||
Total Sears Canada Stores
|
|
|
|
|
456
|
|
|
483
|
|
millions
|
November 2,
2013 |
|
October 27,
2012 |
|
February 2,
2013 |
||||||
Domestic
|
|
|
|
|
|
||||||
Cash and equivalents
|
$
|
196
|
|
|
$
|
181
|
|
|
$
|
227
|
|
Cash posted as collateral
|
18
|
|
|
19
|
|
|
20
|
|
|||
Credit card deposits in transit
|
170
|
|
|
206
|
|
|
133
|
|
|||
Total domestic cash and cash equivalents
|
384
|
|
|
406
|
|
|
380
|
|
|||
Sears Canada
|
215
|
|
|
216
|
|
|
229
|
|
|||
Total cash and cash equivalents
|
599
|
|
|
622
|
|
|
609
|
|
|||
Restricted cash
|
8
|
|
|
11
|
|
|
9
|
|
|||
Total cash balances
|
$
|
607
|
|
|
$
|
633
|
|
|
$
|
618
|
|
millions
|
November 2,
2013 |
|
October 27,
2012 |
|
February 2,
2013 |
||||||
Short-term borrowings:
|
|
|
|
|
|
||||||
Unsecured commercial paper
|
$
|
160
|
|
|
$
|
417
|
|
|
$
|
345
|
|
Secured borrowings
|
1,591
|
|
|
1,473
|
|
|
749
|
|
|||
Long-term debt, including current portion:
|
|
|
|
|
|
||||||
Notes and debentures outstanding
|
2,571
|
|
|
1,668
|
|
|
1,593
|
|
|||
Capitalized lease obligations
|
373
|
|
|
446
|
|
|
433
|
|
|||
Total borrowings
|
$
|
4,695
|
|
|
$
|
4,004
|
|
|
$
|
3,120
|
|
|
|
|
|
|
Moody's
Investors Service |
|
Standard & Poor's
Ratings Services |
|
Fitch Ratings
|
B3
|
|
CCC+
|
|
CCC
|
|
Total
Number of Shares Purchased(1) |
|
Average
Price Paid per Share |
|
Total Number of
Shares Purchased as Part of Publicly Announced Program(2) |
|
Average
Price Paid per Share for Publicly Announced Program |
|
Approximate
Dollar Value of Shares that May Yet Be Purchased Under the Program |
||||||||
August 4, 2013 to August 31, 2013
|
10,516
|
|
|
$
|
39.72
|
|
|
—
|
|
|
$
|
—
|
|
|
|
||
September 1, 2013 to October 5, 2013
|
16,927
|
|
|
55.33
|
|
|
—
|
|
|
—
|
|
|
|
||||
October 6, 2013 to November 2, 2013
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
||||
Total
|
27,443
|
|
|
$
|
49.35
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
503,907,832
|
|
(1)
|
Consists entirely of
27,443
shares acquired from associates to meet withholding tax requirements from the vesting of restricted stock.
|
(2)
|
Our common share repurchase program was initially announced on September 14, 2005 and has a total authorization since inception of the program of $6.5 billion, including the authorizations to purchase up to an additional $500 million of common stock on each of December 17, 2009 and May 2, 2011. The program has no stated expiration date.
|
(a)
|
Exhibits.
|
3.1
|
Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to Registrant's Current Report on Form 8-K, dated March 24, 2005, filed on March 24, 2005 (File No. 000-51217)).
|
|
|
3.2
|
Amended and Restated By-Laws (incorporated by reference to Exhibit 3.2 to Registrant's Current Report on Form 8-K, dated December 2, 2009, filed on December 4, 2009 (File No. 000-51217)).
|
|
|
10
|
First Amendment to the Second Amended and Restated Credit Agreement, dated as of October 2, 2013, between Sears Holdings Corporation, Sears Roebuck Acceptance Corp. and Kmart Corporation, the Revolving Lenders party thereto, the Term Lenders party thereto, and Bank of America, N.A., as administrative agent (incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K, dated October 2, 2013, filed on October 2, 2013 (File No. 000-51217)).
|
|
|
*31.1
|
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
*31.2
|
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
*32
|
Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
101
|
The following financial information from the Quarterly Report on Form 10-Q for the fiscal quarter ended November 2, 2013, formatted in XBRL (eXtensible Business Reporting Language) and furnished electronically herewith: (i) the Condensed Consolidated Statements of Operations (Unaudited) for the 13 and 39 Weeks Ended November 2, 2013 and October 27, 2012; (ii) the Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) for the 13 and 39 Weeks Ended November 2, 2013 and October 27, 2012 (iii) the Condensed Consolidated Balance Sheets (Unaudited) at November 2, 2013, October 27, 2012 and February 2, 2013; (iv) the Condensed Consolidated Statements of Cash Flows (Unaudited) for the 39 Weeks Ended November 2, 2013 and October 27, 2012; (v) the Condensed Consolidated Statements of Equity (Unaudited) for the 39 Weeks Ended November 2, 2013 and October 27, 2012; and (vi) the Notes to the Condensed Consolidated Financial Statements (Unaudited).
|
*
|
Filed herewith.
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|
No information found
No Customers Found
Suppliers
Supplier name | Ticker |
---|---|
Apple Inc. | AAPL |
The Coca-Cola Company | KO |
The Procter & Gamble Company | PG |
NIKE, Inc. | NKE |
Anheuser-Busch InBev SA/NV | BUD |
Microsoft Corporation | MSFT |
PepsiCo, Inc. | PEP |
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|